AASB 2022-2 Amendments to Australian Accounting Standards – Extending Transition Relief under AASB 1

Wednesday, May 4, 2022

AASB 2022-2 amends AASB 1 and AASB 1053 to assist entities with the first-time preparation of general purpose financial statements (GPFS) in some circumstances.

This includes certain for-profit private sector entities that can no longer apply the reporting entity concept or prepare special purpose financial statements from 1 July 2021.

AASB 2022-2 amends:

*  AASB 1 First-time Adoption of Australian Accounting Standards – to allow:

• a subsidiary preparing GPFS for the first time to apply the optional exemption in paragraph D16(a) and measure its assets and liabilities at the carrying amounts that would be included in the parent’s consolidated financial statements where the parent has already adopted either Australian Accounting Standards or IFRS Standards; and
• an entity that becomes a first-time adopter of Australian Accounting Standards in its consolidated financial statements later than its subsidiary (or associate or joint venture) to use the amounts included in the subsidiary’s (or associate’s or joint venture’s) separate financial statements where the subsidiary (or associate or joint venture) has already adopted either Australian Accounting Standards or IFRSs; and

*  AASB 1053 Application of Tiers of Australian Accounting Standards – to allow for-profit private sector entities transitioning from unconsolidated Tier 2 – Reduced Disclosure Requirements GPFS to consolidated Tier 2 – Simplified Disclosures GPFS to apply AASB 1 when preparing consolidated financial statements for the first time.

AASB 2022-2 applies to annual reporting periods ending on or after 30 June 2022.